Ford, University of Michigan Create New Kind of Battery Lab
to Speed Development of Future Electrified Vehicles

ANN ARBOR, MI--Oct. 14, 2013: World-class facility at the University of Michigan allows Ford to
collaborate with battery cell manufacturers, suppliers, university
researchers and startups to test new battery concepts on a small scale that
could be replicated for full production Facility will make it possible for
Ford to build on 20 years of battery research, and to test experimental
battery chemistries while reducing the risk and cost to suppliers Ford is
the only automaker to invest in the new battery lab facility; latest
collaboration builds on a 60-year history between Ford and the University
of Michigan

A new $8 million battery lab opened today at the University of Michigan
that will help Ford develop batteries that are smaller, lighter and less
expensive to produce. The work could accelerate development of
battery-powered vehicles that are more efficient and affordable than
today's models and that go farther on a single charge.

The lab is a battery manufacturing facility designed to support pilot
projects. State-of-the-art manufacturing methods will be used to make test
batteries that replicate the performance of full-scale production
batteries, allowing for faster implementation in future production
vehicles.

"We have battery labs that test and validate production-ready batteries,
but that is too late in the development process for us to get our first
look," said Ted Miller, who manages battery research for Ford. "This lab
will give us a stepping-stone between the research lab and the production
environment, and a chance to have input much earlier in the development
process. This is sorely needed, and no one else in the auto industry has
anything like it."

The lab is the result of collaboration between Ford, battery suppliers,
the University of Michigan, and the state and federal governments, and it
holds the potential for major advancements in extending battery life and
durability. Ford, the only automaker to invest in the facility, contributed
$2.1 million. Other investors include the University of Michigan, Michigan
Economic Development Corporation and the U.S. Department of Energy.

Ford has been supporting battery research for more than 20 years. Last
year, the company invested $135 million in design, engineering and
production of key battery components, and doubled its battery testing
capabilities. Ford was able to accelerate durability testing, with test
batteries now accumulating 150,000 miles and 10 years' life in about 10
months.

Even so, battery development is in its infancy, and more research is
needed. Just as critical, said Miller, is the need for new chemistries to
be assessed in a credible cell format, which means small-scale battery
cells can be tested in place of full-scale production batteries without
compromising the test results.

"It is way too early in the battery race to commit to one type of
battery chemistry," said Miller. "In the span of 15 years, the industry has
gone from lead-acid to nickel-metal-hydride to the lithium-ion batteries
used in Ford C-MAX and Ford Fusion hybrids on the road today. Others in the
auto industry have placed their bets, but we are convinced a better
solution will require input from a multitude of partners."

Ford's electrified vehicle lineup includes five models equipped with
advanced lithium-ion batteries. Earlier-generation vehicles featured
nickel-metal-hydride batteries. Lithium-ion batteries are about 25 percent
to 30 percent smaller, and can provide about three times the power per cell
of nickel-metal-hydride batteries.

Miller said locating the lab on a university campus will be a draw for
battery suppliers to work on complex problems in a common environment. "We
need to work on these problems together in a neutral lab setting," he said.
"This way, we all win. I think you are going to see a lot of companies in
the battery supply chain come to Michigan to use this facility, in very
short order.

"This is important for the state of Michigan, too," Miller added.
"Previous investments have been focused on battery production, and now our
state becomes a research core for batteries. The University of Michigan
benefits, because the best and brightest from car companies, suppliers and
academia will come here. In turn, that will attract the best students. We
need to nurture the next generation of battery scientists, and it helps
Ford that the campus is less than 40 miles from Dearborn."

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